DISCOVER a new kind of lifestyle at Golden Topper’s newest development in Cebu, El Sol. The leisure condominium, whose name translates to “the sun,” is inspired by the warm disposition of the Cebuanos. Featuring a combination of nature-inspired design elements and resort-like amenities, El Sol offers a serene escape from the city noise.
El Sol is located inside the Seagrove estate, a soon-to-rise seafront lifestyle destination by Ayala Land in Punta Engaño, Lapu-Lapu City.
Seagrove will feature a mix of residential and retail components, as well as a hotel in the 14-hectare property. Some of the highlights of the estate is the 500-meter boardwalk fronting Magellan Bay and the 40-hectare mangrove forest.
The project had its grand launch on Dec. 11, 2021, at the Mactan Ballroom of Shangri-La’s Mactan Resort and Spa Cebu, wherein El Sol was formally introduced to guests and brokers with a thorough presentation on its specs as well as an outlook on Lapu-Lapu in terms of real estate. As Golden Topper’s first leisure residence, the property promises a fresh way of living.
Potential investors and homeowners can expect efficiently planned spaces at El Sol. All the units, from the studio to the two-bedroom, are smartly laid out for optimal lighting and ventilation while keeping the interiors sleek and stylish. Residents will also be spoiled with amenities such as a sauna room, yoga studio, karaoke booths, and even an outdoor barbecue area.
El Sol by Golden Topper is slated for completion by the first quarter of 2027. El Sol is Golden Topper’s second project in Cebu, following City Clou located along Jakosalem St., Cebu City. An unnamed future project in Punta Engaño is also in the pipeline. Currently, its portfolio consists of nine projects, including properties in the cities of Makati, Pasay, Quezon, Cebu, and Lapu-Lapu. (CHRISTIAN B. QUILO)
Published by SunStar Daily Cebu last December 27, 2021, thru this link:
When two titans joined forces, they can create a city within a city.
This is what to be expected as two of the country’s real estate giants, Ayala Land Inc. and SM Prime Holdings, had partnered with each other in their newest property development venture in the South Road Properties of Cebu City – the South Coast City.
South Coast City, a P300-B project of the SM-Ayala consortium, is eyed to become the newest entertainment center of the Visayas region, boosting attraction, tourism, and businesses within the area. It will highlight an Arena, Convention Center, and 1-hectare park, among many other mixed-use facilities, to support Cebu’s growing demand for convergence areas.
Moreover, the said project is to generate about two million jobs.
South Coast City sprawls a vast land area of 26 hectares, enough to house state-of-the-art facilities, attractions, and services that will give more vibrance to this part of the metro.
1. Seaside Arena and Convention Center
The Arena is set to be the preferred destination for major local and international entertainment and sporting events while the Convention Center will be one of the largest in Cebu once completed.
2. District Square
This is the progressive commercial district of South Coast City. This area is planned for mixed-use commercial offerings which will complement the entertainment and recreational facilities of the broader community. It offers investment opportunities through commercial lots.
3. 1-Hectare Park
This linear park will serve as a refreshing green oasis in the middle of the master-planned development.
Fronting the Cebu Strait, South Coast City will take pride of its spectacular waterside views and features. A pedestrian network will link the main areas of the development. Other amenities also include:
A 36-meter wide and 320meter long green space.
Road networks with primary street widths of 30 meter wide.
Underground Telecommunications System duct banks with fiber optic cable capable to handle multiple service providers.
Digital Subscriber Line (DSL) technology-cable telecommunications.
THE SM-AYALA CONSORTIUM
A consortium led by ALI and SM Prime won the new landbank at SRP (lot number 8-B-1) with a winning bid of P10 billion.
This tactical alliance of the two largest developers in the country is a strategic move to unlock the full potential of the 26-hectare prime property they acquired at the South Road Properties.
In a report, top officials from Ayala Land Inc. and SM Prime Holdings said that they decided to work together on this big project to hasten the development of this area, which the Cebu City government was grooming to be a new central business district.
Groundbreaking date: July 2019
Target completion date: Phase 1 on 3rd Quarter of 2021
Lot sizes: 1,777 – 2,601 sqm (11 commercial lots)
Developer: Ayala Land & Cebu Holdings
Location: South Coast City, South Road Properties (SRP), Cebu City
Transit Connectivity Map:
500m from SM Seaside, Cebu’s biggest mall
2km from South Bus Terminal
4km from Cebu Port
11km from Mactan Cebu International Airport
As of January 2021, groundworks are still ongoing while the city is under community quarantine status. Bore piling works have already begun at the site of the convention center and arena.
The Convention Center’s target opening date is on October 2022 while that of the 16,000-seater Arena will be on July 2023.
There is always something more to look forward to in Cebu City even with the pandemic scare looming around us. South Coast City of the Ayala-SM Consortium is a proof that we are destined to achieve bigger and better things in the coming years, as it has always been for the last years.
With the Philippine government’s continued efforts to decentralize Metro Manila, the spotlight has turned to other cities for infrastructure and real estate investment – like Cebu, the second largest metropolis in the country. Its big city conveniences, coupled with rustic island living charm, make it an attractive destination for property seekers and investors. This makes owning a centrally-located condo in Cebu an exceptional decision for a first home or initial investment in the city.
Big-ticket projects in Cebu are scheduled for completion in the next few years – like the Cebu-Cordova Link Expressway and the fourth Mandaue-Mactan link bridge. They are expected to improve travel between mainland Cebu and the rest of Mactan Island and its world-class beach resorts.
The Metro Cebu Integrated Intermodal Transport System, on the other hand, will include a Monorail Transit and Bus Rapid Transit system, which is a first for the city. To boot, the Metro Cebu Expressway will connect the north and south Cebu, easing travel time by 2 hours.
Aspire by Filinvest is at the forefront of these developments, crafting future-forward residential communities at the heart of the bustling Cebu City – just like Sanremo Oasis. This vibrant Italian-themed condo enclave is nestled within the City di Mare townscape of Filinvest in South Road Properties, just a few kilometers away from the Cebu-Cordova Link Expressway. Investors at this strategically located property can surely expect a boost in property values.
A key investment destination
Despite the pandemic, Cebu continues to be a key investment destination. The Cebu Chamber of Commerce and Industry reported in May 2021 a 95% recovery rate for the city’s local economy. This is thanks, in large, to the city being a major player in the business process outsourcing industry, with economic zones like the Cebu Business Park and Cebu IT Park.
Additionally, the construction of around eight township projects continues to be in full swing, and more investments are expected to come in as it plays host to our country’s biggest developers. Just in South Road Properties, you can find three major township developments – UHRI’s NuStar integrated resort and casino, the SM-Ayala South Coast City consortium, and Filinvest’s City di Mare, a 50-hectare master-planned coastal township, the largest among the three. Outside this locale, new township developments are emerging in Mandaue, Lapu-Lapu, and Minglanilla.
In addition, the green-lighting of the ₱10-billion New Cebu International Container Port and proposal to build Terminal 3 of the Mactan-Cebu International Airport is indicative of the continued investor confidence in the city.
Given its recovery and anticipation of a return to full-fledged economic activity, choosing a home that is conveniently “close to the action” is a promising proposition. With a condo in Cebu, you have relatively immediate access to the city’s offerings. And as an investor, you have a real estate asset located in one of the most highly-desired property locations in the country.
A world-renowned island
While the urban development and overall fast-paced way of living in Cebu are comparable to the cities of Metro Manila, Cebu City, alternatively known as “The First Capital of the Philippines,” differentiates itself from the current capital region by being a place that also manages to maintain its provincial island charm.
As the country’s oldest city, Cebu has maintained several historical landmarks. These include the likes of Magellan’s Cross, the Sto. Niño Church, and Colon Street. It is centrally located, too, making it easy to get to and from popular beaches like Oslob, Sumilon, Malapascua, and Bantayan Islands.
Cebu City and its namesake island-province are often marketed as a singular tourist destination with its combination of a natural countryside scenery with urban attractions, including cultural-historical sites and developing infrastructure. In 2016, 2017, and 2019, the entire island had entered Condé Nast Traveler’s World’s Best Islands list.
If being an economic and tourism center was not enough, Cebu City is also a university town. It is home to 10 large universities which have branches throughout the city. These include the University of San Carlos and its five campuses, as well as a Cebu campus for the University of the Philippines, to name a few. In October 2020, Central Visayas recorded 278,180 higher education enrollees, which will soon be part of the city’s highly skilled labor force.
When you own a condo in Cebu, you have convenient access to these awe-inspiring spots. If you aim to lease your property, you can enjoy this advantage that will entice more tenants.
Discover an Oasis in Cebu
Metro Cebu has its fair share of condo developments given its extensive urbanization. Of course, no one property is the same, and while some are just addresses, others redefine what a home to retreat to is. Aspire by Filinvest’s resort-style mid-rise communities are among the latter and more.
One Oasis Cebu
One Oasis Cebu is an Asian-Balinese-inspired residential enclave with a refreshing golf-course view located in Kasambagan, Cebu City. It is highly accessible through public transport along F. Cabahug Ave., and many landmarks are no more than three kilometers and is a bikable distance from major CBDs like the Cebu Business Park and the Cebu IT Park.
Both One Oasis Cebu and Sanremo Oasis dedicate over 60% of their land area to rejuvenating amenities and low-density environs, providing urbanites an escape in the city with a year-round vacation ambiance. Here, you can relish the freedom to live, play, and pursue your passions every day. Stringent health protocols and a 24-hour security system are established to ensure your safety, and a host of rejuvenating amenities are ready for your recreation and leisure.
Along with comprehensive amenities, lush greenery, and strategic locations, condos from Aspire by Filinvest are smartly-designed, with flexible spaces that can support remote work and remote learning. This is an important consideration when investing in a condo in Cebu, as a true home can address all aspects of our lives.
“Make your money work for you” is so cliché, until a crisis hits you.
When a crisis hits, like the one we are experiencing now with the deadly Covid-19 virus, you will always find yourself looking for your safety net, and oftentimes you look at your portfolio of investments, lucky if you have many.
For people who are just starting out, picking the right investment is key and when you say “right investment” it doesn’t only mean the returns it could give over a period of time but by how this investment can also help you when the going gets tough.
Among the many types of investments, a condominium property is a bright spot when you talk of crisis-proof investments. Here are three quick reasons why:
1. Its value doesn’t depreciate during crisis.
Unlike in the stock market, the value of a property like a condominium will not dive. It will remain on a stable level and you can always trust that there will be a continued demand for it in the market during crisis, even more so after crisis.
2. It will continue to earn income even during a crisis.
Unlike in businesses like stores or cafes, renters can expect continuous flow of money from rents during crisis, unless the owner decides to waive it out of goodwill. But since a shelter is a basic need, people will continue to pay for it, the same way they will continue to allocate budget for the basic food supplies. A shelter will remain on top of the priority list.
3. It is immediately available should you need it.
In times of crisis, we never know when an extra property comes in handy. Some who may not be renting their condominiums yet, may find themselves getting a lot of interested tenants and then becomes a back-up source of income for the family, especially when some companies decide to close shop and implement force leaves, leaving some of their employees without an income.
We could tell you more, but these should be enough to get you looking at a condominium property in another angle. And to be sure, choose those developed by reliable brands with a proven track record of delivering the best value for your money.
It feels a bit odd talking about tourism-focused real estate when most visitors are unable to travel to the Philippines at the moment. However, it can be an important driver of a Philippine property market rebound once the situation returns to normal.
Philippine Department of Tourism (DOT) data showed there were 8.26 million foreign arrivals in 2019, more than a 15 percent increase from the previous year. That number is dwarfed by the country’s regional peers. In 2019, Indonesia recorded roughly 16 million international arrivals, Malaysia welcomed more than 26 million tourists, Vietnam received an estimated 19 million visitors and Thailand surpassed 40 million arrivals.
So, what gives?
It has nothing to do with a lack of interesting destinations. Tourists who visit the Philippines almost always praise the country’s warm hospitality and beautiful scenery. Arrival numbers elsewhere in Southeast Asia are buoyed by inter-region travel, something not seen in the Philippines due to its isolated location.
But this isn’t really a huge issue, especially as it relates to tourism-focused real estate. Apart from some demand from Singapore, there isn’t a lot of intra-regional property buying. The bulk of tourist arrivals to the Philippines in 2019 came from China, South Korea, USA, Japan, and Australia.
Tapping into the retirement market could also benefit the country. The Philippines has one of the best retirement visas available in Southeast Asia. This could help it attract more long-stay visitors.
On the domestic front, an additional 60 million trips are made by locals each year, an important figure to note. This means there is a large base of both international and domestic property buyers who will likely return to the country’s popular tourist destinations once the COVID-19 situation has improved.
Being ready to tap into this market and deliver tourism-focused real estate could be a catalyst in a Philippine property market rebound. Of course, it is also much easier said than done.
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What’s holding the Philippines back?
According to the Philippine Statistics Authority (PSA), tourism accounted for 12.7 percent of the country’s GDP in 2019, up from 5.6 percent in 2000. Both government and private sector investment in the tourism sector has grown as well.
The PSA found that private investment rose by an average of 19.3 percent annually between 2010 and 2019. Government investment in tourism infrastructure and other related fields increased by 4.6 percent on average from 2012 to 2019.
This is good, but not nearly enough. While tourism infrastructure has improved in some parts of the Philippines, such as Cebu and Puerto Princesa, more work is needed to make the country a viable destination for real estate investors.
Apart from improving infrastructure, developers must be more in tune with the needs of tourism-focused real estate buyers. There are a few companies getting it right (we will get to those a little later in the article) but too many firms aren’t being innovative when launching new projects in tourist destinations.
Looking at tourism-focused real estate success in Southeast Asia
Developers in the Philippines don’t have to look far to find tourism-focused real estate success stories. Bali has been attracting foreign property investors for decades in spite of complex laws that prevent freehold ownership. Having a first mover advantage has helped the island with homebuilders and agents now boast decades of experience in helping property buyers.
In Thailand, the rise of the condotel helped attract a new wave of property buyers who can enjoy the best of both worlds–investment returns and a holiday home. If you are unfamiliar with the condotel concept, it is a project sold similar to a pre-selling condominium but operated like a hotel.
The main difference between most condotels in the Philippines and ones in Thailand’s tourist areas is management. Thai homebuilders are partnering with well-known, 4- and 5-star hotel brands to manage their condotels. These are more attractive to buyers since they trust the brand and are more popular with guests ensuring strong rental returns. In the Philippines, many developers try to manage the property themselves which can be off-putting to potential investors.
If tourism-focused real estate in the Philippines is going to grow, developers need to understand what property seekers are after. Most require a hands-free investment being operated by a hotel brand they trust. They also like having the option to stay at the property for a week or two every year. This is something a handful of real estate developers in the Philippines have adapted to.
While there hasn’t been a lot of activity when it comes to tourism-focused real estate in the Philippines, a few developers have recognized the potential of the sector. In Cebu, Grand Land has been at the forefront. The Grand Tower, a mixed-use project containing the Dusit Princess Cebu, was one of the region’s first condotels targeting users/investors.
The project will be operated as a hotel with unit owners sharing net room revenue. Additionally, they are entitled to stay at the property 15 days each year. Dusit Princess Cebu proved to be popular among both local and international investors which saw it quickly sell out. Construction is ongoing and the development remains on schedule.
The Chancellor Hotel from Global-Estate Resorts, Inc, a subsidiary of Megaworld, is another tourism-focused real estate project making waves in the country. Located in Boracay, this condotel is perhaps the most ambitious to date. It allows property buyers a chance to invest in one of the country’s most popular destinations.
Can tourism-focused real estate help the Philippine property market rebound?
It’s important not to get carried away about what type of impact this can have. Tourism-focused real estate can help the Philippine property market rebound, but it is only one part of a larger equation.
Ultimately, this sector serves as a link between the property and tourism industries that can elevate both. Tourism-focused real estate in the Philippines won’t single-handily turn things around. However, it could help the Philippine property market reach new heights once the current situation has passed.
Developers may think demand isn’t there, but this seems like a miscalculation. Overseas buyers are already active in places like Cebu, but there are many more on the sidelines waiting for condotel projects that provide a hands-free form of investment.
There is likely to be greater demand for tourism-focused real estate from both domestic buyers and OFWs. That is because it ticks a lot of boxes in terms of what they are looking for. The potential for returns is good, there is no need to worry about management and it doubles as a holiday property.
That being said, it is necessary to mention the risk which we are living through now. Another global pandemic would harm tourism-focused real estate more than traditional properties. Both developers and investors will be keenly aware of that.
If you look at some of Southeast Asia’s other tourism destinations, you’ll see the property markets bounced back here faster than urban locations. Both Bali and Phuket have overcome catastrophic events to maintain their upward momentum.
At the very least, it won’t hurt the property sector to consider tourism-focused real estate moving forward. As we have seen elsewhere in the world, doing so may benefit everyone.
Residential demand in Cebu is expected to increase this year with lower real estate prices and key infrastructure projects driving the market forward. The city has been the preferred investment destination outside of Metro Manila and that trend will continue in 2021.
“Colliers projects a potential rebound in residential demand in 2021 (in Cebu) and thus sees a faster pace of price increase from 2021 to 2022 to reflect a stronger residential market,” Joey Bondoc, Colliers Philippines Senior Research Manager explained to the Philippine News Agency.
He continued, “The residential sector of the area is at a discount as compared to projects located within the country’s capital. The proliferation of both local and national developers in Cebu has raised land and property values.”
Research from Colliers Philippines found that new project launches and take up both fell in 2020 due to the COVID-19 pandemic. However, the consultancy believes both will recover this year on the back of strong residential demand in Cebu.
What’s driving residential demand in Cebu?
Two key factors have been responsible for driving residential demand in Cebu over the past ten years. Firstly, home prices are significantly less than those in Metro Manila which is appealing to buyers. Secondly, a number of infrastructure projects will improve the region’s connectivity and boost property prices in the future.
“Over the past few years, we have observed the transformation of Cebu’s skyline with large-scale residential, commercial, retail and hotel developments. The property boom in Cebu offers an alternative metropolitan-paced business lifestyle at a discount to Metro Manila,” Bondoc stated.
Several key infrastructure projects remain in the pipeline and these could support the growth of the Cebu and Davao property markets. In Cebu, the Cebu-Cordova expressway, Cebu bus rapid transit, Cebu monorail, and Metro Cebu expressway are a few of the possible improvements.
There are still overseas foreign workers (OFWs) are buying property, although the number is less than it had been in previous years. Attractive investment returns coupled with affordable real estate prices in the Philippines have seen OFWs become increasingly active in the country’s property market. And with prices falling and discounts widely available, OFWs with cash in hand may be able to take advantage of some favorable deals.
However, preparing for the property buying process isn’t always easy if you’re an OFW. Burning vacation days flying home to search for and purchase a property isn’t ideal. That is valuable time you could be spending with friends and family. But if you’re prepared, buying real estate in the Philippines from overseas doesn’t have to be troublesome. Here are five things OFWs need to know before buying property.
1) Start your search
If you are living outside the Philippines, there are a number of websites where you can search for properties back home. For example, Dot Property Philippines – the very website you’re on – has the country’s best selection of real estate spanning the entire country. You can search for a property based on your budget, location and multiple other factors making easier to find the right condo or house no matter where in the world you happen to be.
2) Pick the right seller
These days, some property developers and real estate agents specialize in working with OFWs. If you want a smooth process, it is best to find one of these sellers. Not only can they advise you on common issues OFWs must deal with, but they may also be able to facilitate a deal that doesn’t require to be in the Philippines.
3) Get your documents ready
Don’t procrastinate getting all the necessary paperwork ready. If you want to buy a property, you will need to have all of these documents:
Signed and consularized Special Power of Attorney (SPA)
Photocopy of important IDs (passport, driver’s licenses, etc.)
Proof of billing of utility bills
Proof of income
Tax Identification Number (TIN)
Certificate of employment
4) Understand how the property will generate income
Chances are, you want your property to generate income while you are overseas. Maybe you are planning to have family live there and this isn’t a concern for you. But if that isn’t the plan, someone will have to manage your property in order for it the generate rental income. It’s important to understand how this will work before you buy.
A number of condo developers now offer property management services meaning they will find someone to rent your unit and take care of it for a percentage of the revenue generated. Alternatively, the are several companies who can do this as well. Whatever you decide, make sure you have done your research ahead of time to ensure you aren’t stuck with an empty property.
Getting the best price during real estate negotiations doesn’t have to be a painful process. In fact, it can be a very hands-off affair if you hire the right real estate agent. The key is knowing what to do and when to do it.
There are two important things you should note. First, don’t take things personally. This is about getting the best price during real estate negotiations, not making new friends. Second, you should have an idea of what is acceptable regarding terms before starting any negotiation. This will ensure you can reach a positive result.
Tips to help you get the best price during real estate negotiations
1) Let your real estate agent do the heavy lifting
Unless you like negotiations or are good at them, you don’t really need to be involved with much of this process. Your real estate agent is more than capable of fighting to get you the best possible deal. A lot of buyers end up costing themselves money by being in the room. That’s because they either give away just how much they like the property or are afraid to drive hard bargain.
2) Respond quickly
If a seller names a price or gets back to you with a counteroffer, respond as soon as possible. The more time you take allows them to field other offers from potential buyers. You don’t need to get back to them right away, but you can lose the upper hand in a negotiation if it takes weeks to respond.
3) Don’t put all your eggs in one basket
You have no idea how negotiations will play out. It is vital you keep your options open or at least appear to be doing so. Failing to do this allows the seller to negotiate from a position of strength since you don’t have any backup plans.
4) Walk away and let the seller come back to you
If you really want to get the best price during real estate negotiations, sometimes it pays to walk away. If the process has reached a standstill where no progress is being made on a deal, stepping away from the table may be a way to break the deadlock.
This is risky and it is a strategy you need to discuss with your real estate agent beforehand. Some sellers may not come back, especially if they have other offers out there. However, those serious about selling and without other buyers will likely return willing to negotiate.
Being an Overseas Filipino Worker is not easy. It takes a lot of sacrifices and you can only imagine how difficult it must be to work in a foreign land away from your loved ones. OFWs endure the loneliness and hardships just to give their families a better future.
As the years go by, you realize that you cannot be an OFW forever. You eventually want to rest and retire but of course, you need to make sure you have enough funds to do this. Saving is most people do but is it enough? Here are the reasons why investing in real estate is the best way to go:
Real estate is a safe investment. The value of land always keeps appreciating. With the volatility of the stock market these days, you would want to invest your money into something that is tangible and real.
Can be used as leverage. Say there is an emergency and you need to get a loan as soon as possible. Owning a property means you can use it as leverage to get a loan. Lenders usually check your credit history, income, debt, and credit score to verify if you could pay back the money you loaned. By owning a property, you can secure the loan by having your property as collateral so that you can surely get that loan approved.
Can be monetized. You can earn a passive income by having your property rented. Many applications in this digital world can help you earn money by allowing guests to stay in your place for a limited period of time. This is perfect because you can still use your place any time but if when nobody is using it, at least there’s money that goes in which you working extra hard to make it happen.
You can use it. You don’t need to worry if you too tired to go home after a long day with the kids. By owning a property in a prime location, you can rest easy knowing that you are not wasting your precious time being stuck in traffic on your way home!
Legacy Investment. Real estate is one of the common things passed down from generation to generation. Bypassing it on to your kids you can assure them that no matter what happens in life whether the economy is booming or not, they will be assured that there will always be roofs on their heads and they have a place to call home.
The original article is lifted from this site, all credits are yours: https://silingan.com.ph/why-real-estate-is-the-best-investment-for-retiring-ofws/
by: Cheyenne Hollis is Editor-in-Chief at Dot Property Group and Thailand Property.
While the COVID-19 pandemic slowed many real estate sectors in the Philippines, demand for industrial and logistics space actually increased. Several experts believe the sector will remain a bright spot for the country’s property market in the coming months and possibly years.
This was one of the key takeaways from The Future of Logistics: Moving Beyond the Pandemic panel discussion organized by Santos Knight Frank.
“During the ECQ period, demand for industrial and logistics space rose for essential goods. In the following months, we expect demand to be more stable compared to the other real estate sectors. This demand is encouraged by the shift to e-commerce and the subsequent effects on demand for logistics, cold chain, warehouse, and other industrial services,” Kash Salvador, Santos Knight Frank Associate Director of Investment & Capital Markets, stated.
Health and wellness now, manufacturing in the future
According to William B. Chiongbian II, Group President & CEO of Fast Logistics Group, the Philippine logistics industry is in a prime position to support growing demand for health and wellness products.
“The quality of food will matter, and health and wellness will start to take a front seat in a developing country like the Philippines. With the right recipes from entrepreneurs, local government, and delivery enhanced by information technology, the industrial real estate infrastructure will be in the right place,” Chiongbian said.
Looking ahead, the Philippines could become a manufacturing destination in Asia as long as the industrial sector receives the proper support.
“With the right real estate infrastructure and support from the government, we’ve got to act together within the industrial sector that the Philippines is still one of the best manufacturing destinations. We need to work together to enhance what this country has to offer,” Chito Zaldarriaga, President of the Philippine Ecozone Association (Philea), explained during the discussion.
Industrial sector outlook remains positive overall
The industrial sector is expected to remain resilient moving forward. Howver it is important for those in the sector to rethink strategies in order to best take advantage of new opportunities that arose from the COVID-19 crisis.
“The industrial sector is all about the basics: basic space, food security, storage, and all the things you need in a crisis. This crisis is a realization that people are always going to need the industrial and logistics sector, and there is huge opportunity here,” Rick Santos, Chairman & CEO of Santos Knight Frank, noted.
After years of waiting for favorable REIT rules and regulations to be approved, firms have no intention of letting COVID-19 derail share offering plans. DoubleDragon became the second Philippine developer to announce a REIT launch in 2020.
The Department of Finance, Securities and Exchange Commission, Bureau of Internal Revenue and Philippine Stock Exchange signed off on the new REIT rules at the start of the year. Developers had been lobbying for the rule changes for almost decade.
Ayala Land was the first developer to submit a REIT application in the Philippines, doing so in January. According to BusinessWorld, the Ayala Land REIT includes three commercial developments in Makati: Solaris One, Ayala North Exchange and McKinley Exchange.
Despite the COVID-19 pandemic causing a property market slowdown, Ayala Land Offices Head Carol T. Mills told the website that the firm is committed to launching its REIT in 2020.
DoubleDragon readies 2020 REIT launch
Developer DoubleDragon is preparing a PHP11 billion REIT launch that will take place during the fourth quarter. The company has decided to go ahead with plans to bring it to the market in 2020 despite economic uncertainty caused by COVID-19.
Both DoubleDragon and Ayala Land will reinvest money generated from the REIT launches into their respective businesses. According to Santos Knight Frank, this reinvestment will contribute to the growth of the entire Philippine property sector and is the main benefit of the new REIT guidelines.